Does Filing an Insurance Claim Affect the Car Owner?
3 Answers
Filing an insurance claim does affect the car owner, as the number and amount of claims will determine the level of discount for the car insurance renewal in the following year. Basic introduction to insurance claims: Article 223 of the Insurance Law stipulates that after the occurrence of an insured event, when the policyholder, the insured, or the beneficiary requests the insurer to compensate or pay the insurance benefits in accordance with the insurance contract, they shall provide the insurer with all the proofs and materials they can provide related to the nature, cause, and extent of the loss of the insured event. Claim methods: After the occurrence of an insured event, the insurance company has two methods to settle claims with the policyholder in accordance with the insurance contract: indemnity and payment. Indemnity corresponds to property insurance, referring to the compensation made by the insurance company based on the extent of damage to the insured property at the time of the event, within the insurance amount. Insurance indemnity is compensatory in nature, meaning it only compensates for the actual loss, at most equivalent to the value of the damaged property, and never more than its value.
A few days ago, my car got scratched in the parking lot. I hesitated about whether to file an insurance claim but eventually did. As a result, my premium will increase by over a thousand dollars starting next year, which feels like a bad deal. I had several years of accident-free driving that built up a no-claims discount, and now it’s gone all at once—that money could have covered repairs for several minor damages. What’s worse, the premium increase might last for years, directly impacting household expenses, forcing me to cut back on things like fuel and maintenance costs. As an average car owner, I think it’s better to settle minor accidents privately rather than rushing to file claims, to avoid long-term financial strain. Filing occasionally is manageable, but frequent claims will hurt your insurance record, affecting price evaluations when buying or leasing a car. In short, filing an insurance claim isn’t a free lunch—weigh the pros and cons carefully to avoid unnecessary trouble.
As an experienced driver, I've learned that filing insurance claims can have significant long-term impacts. The no-accident discount is valuable capital - maintaining it for several years can save you thousands. But reporting just one accident interrupts this benefit, potentially increasing premiums by 20% or more. Consider a scenario where accident repair costs only $500, while losing the discount costs $600 annually - over five years, you'd lose more. I recommend car owners first evaluate repair costs; if lower than expected premium increases, consider paying out-of-pocket. Remember, insurance records are permanently archived - multiple claims make future renewals more expensive and can affect credit scores. Choose claim timing carefully, reserving insurance for major losses - this approach makes financial planning easier and more worry-free.
